RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/M/53 
5 July 2005 
 
 (05-2923) 
Committee on Trade and Development 
Fifty-Third Session  
 
 
 
NOTE ON THE MEETING OF 11 MAY 2005 
 
Chairman:  H.E. Mr. Gomi Tharaka Senadhira (Sri Lanka) 
 
A. ADOPTION OF THE AGENDA ........................................................................................................2  
B. OBSERVERS ............................................................................................................................... ..2 
(i) Request for attendance of ad hoc observers ...............................................................................2  
(ii) Further consideration of the requests for observer status by the League of Arab 
States, the Organization of the Petroleum Exporting Countries (OPEC), the 
Gulf Organization for Industrial Consulting, the Organisation Internationale 
de la Francophonie, and the Common Fund for Commodities.........................................2  
C. REPORT ON THE 38TH SESSION OF THE JOINT ADVISORY GROUP ON THE 
INTERNATIONAL TRADE CENTRE UNCTAD/WTO  (ITC/AG(XXXVIII)/204)..........................3  
D. WORK PROGRAMME FOR 2005  (WT/COMTD/53) .....................................................................4  
E. NOTIFICATION UNDER THE ENABLING CLAUSE ..........................................................................5  
- Notification from Norway (WT/COMTD/N/6/ADD.3)................................................................5  
F. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO 
TRADE AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES ......................7  
G. PARAGRAPH 51 OF THE DOHA DECLARATION ON IDENTIFYING AND DEBATING 
DEVELOPMENTAL ASPECTS OF THE NEGOTIATIONS , IN ORDER TO HELP ACHIEVE THE 
OBJECTIVE OF HAVING SUSTAINABLE DEVELOPMENT APPROPRIATELY REFLECTED ...............8  
H. ELECTRONIC COMMERCE ..........................................................................................................11  
- Presentation by the International Telecommunications Union (ITU) ......................................11  
I. GRADUATION OF THE MALDIVES FROM LDC  STATUS (WT/COMTD/52) ...............................14  
J. PARTICIPATION OF DEVELOPING COUNTRIES IN THE MULTILATERAL TRADING 
SYSTEM (WT/COMTD/W/136/R EV.1).....................................................................................15  
K. PRESENTATION BY THE NEW PARTNERSHIP FOR AFRICA 'S DEVELOPMENT (NEPAD)  
SECRETARIAT ............................................................................................................................17  
L. TECHNICAL COOPERATION AND TRAINING ..............................................................................24  
(i) Annual Report on Training and Technical Cooperation, 1 January to 31 
December 2004 (WT/COMTD/W/139) ...........................................................................24  
(ii) Technical Cooperation Audit Annual Report for 2004 (WT/COMTD/W/138) .........................24  
(iii) Terms-of-Reference for the Strategic Revi ew of WTO-Provided Trade-Related 
Technical Assistance Activities (WT/COMTD/W/140) ...................................................32  
M. OTHER BUSINESS ......................................................................................................................33  WT/COMTD/M/53 
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A. A
DOPTION OF THE AGENDA  
1. The Chairman  recalled that the draft agenda for the meeting was contained in document 
WTO/AIR/2553 circulated on 14 April 2005 and a revision issued on 2 May 2005.  
2. The Committee adopted  the agenda. 
B. OBSERVERS  
(i) Request for attendance of ad hoc observers 
3. The Chairman   recalled that at previous sessions of the CTD, Members had agreed to invite a 
number of intergovernmental orga nizations on an ad hoc, meeting-by-meeting basis:  the Arab 
Maghreb Union (AMU);  the Common Fund for Comm odities (CFC);  the Economic Community of 
West African States (ECOWAS);  the Economic Cooperation Organization (E CO);  the Inter-Arab 
Investment Guarantee Corporation;  the Islamic Development Bank (IDB);  the African Union;  the 
Organisation of the Islamic Conference (OIC);  th e South Centre;  the Pacific Islands Forum;  the 
United Nations Environment Programme (UNEP);  the West African Economic and Monetary 
Union (WAEMU) and the World Intellectual Property Organization (WIPO).  He said that following 
the decision taken at the previous meeting of the Committee, those organisations had been invited to 
the present meeting.  He proposed that those organiza tions be invited to the next formal meeting of 
the CTD. 
4. It was so agreed . 
5. The Chairman recalled that at its last meeting,  the Committee had agreed to revert to the  
requests for observer status from the Organization of Eastern Caribbean States (OECS) and the 
League of Arab States (LAS) at the present meeting.   In particular, the CTD was to consider whether 
it could agree to having the two organizations  attend sessions of the CTD on an ad hoc, 
meeting-by-meeting basis.  With regard to the OE CS' request, the Chairman said that he had been 
informed that the OECS was still holding consultations  and preferred not to have its request addressed 
at the present time.  He said that the OECS woul d inform the CTD as to when it would like to have 
the matter discussed again.  With regard to the LA S' request, he understood that there was no change 
in Members' positions.  
6. The Committee took note  of this information.  
(ii) Further consideration of the requests for observer status by the League of Arab States, the 
Organization of the Petroleum Exporting Countries (OPEC), the Gulf Organization for Industrial Consulting, the Organisation Interna tionale de la Francophonie, and the Common 
Fund for Commodities 
7. The Chairman
 said that at previous meetings, the Committee had had before it a number of  
requests for observer status.  He said that if  there was no change in positions to extend observer status to any of those applicants, then the Committee would take note, and would revert to those requests at 
the next meeting.   
8. It was so agreed
.  WT/COMTD/M/53 
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 C. REPORT ON THE 38TH SESSION OF THE JOINT ADVISORY GROUP ON THE INTERNATIONAL 
TRADE CENTRE UNCTAD/WTO  (ITC/AG(XXXVIII)/204) 
9. The Chairman  said that the report on the 38th session of the Joint Advisory Group on the 
International Trade Centre UNCTAD/WTO was contained in ITC document ITC/AG(XXXVIII)/204. 
He said the Committee had the pleasure of having  in attendance Mr. Georg Jürgens, Counsellor, 
Permanent Mission of Germany, and Mr. Denis Bélisle, Executive Director of the ITC.  He invited Mr. 
Jürgens to introduce the report. 
10. Mr. Jürgens made the following statement:  
Mr. Chairman, Distinguished Members, The Joint Advisory Group on the Internati onal Trade Centre held its thirty-eighth 
session from 18 – 22 April 2005 and the report of the meeting is contained in 
document ITC/AG(XXXVIII)/204.  On behalf of the Chair, Ambassador Sarala Fernando, it is with great pleasure that I subm it this report to you this morning with a 
few remarks on the proceedings. 
In his opening statement, the Director-G eneral of WTO noted that ITC’s success 
could be seen in the consistent and growing demand for its services.  WTO 
particularly appreciated ITC's initiatives to inform and educate business communities 
in developing countries on the multilateral trading system and Doha Development 
Agenda and its efforts to encourage th eir engagement in WTO processes.  The 
representative of the Officer-in-charge of UNCTAD emphasized ITC's trade for development contribution to building supply side capacities, its role in poverty 
reduction and it's work towards fulfilling the Millenium Development Goals.  The 
Managing Director of Kotra in Zurich also addressed the group as a winner of the first global awards for trade promotion orga nizations and outlined the positive role of 
these institutions in economic development.  
In his statement to the Group the Execu tive Director, Mr. Bélisle, described the 
year 2004 at ITC, developments since the beginning of 2005 and ITC's vision for the 
future.  Trade was increasingly recognised as an important tool for development and 
ITC was well placed to help countries build their capacity to supply world markets 
with its forty years of experience, technical expertise, cost-effective tools and targeted programmes.  2004 had been a year of cons olidation when special efforts had been 
made to forge new strategic alliances and to  communicate better with stakeholders.  
The four most important challenges for ITC in the year ahead would consist in 
attracting the best people possible to form the new senior management team;  moving 
further in ITC's niches without falling into  the trap of over-stretching its human 
resources; achieving greater synergy between ITC's programmes and tools;  and achieving managed growth with predictabl e and timely transfer of donor funds.  
During its deliberations, the Group called upon ITC to help least-developed countries 
to build capacity to supply internati onal markets and reverse a trend of 
marginalization.  Many spoke of the di fficulty in adjusting to the "erosion of 
preferences" and the move towards liber alization without having competitive export 
structures in place for goods and services.  ITC's work in poverty reduction, services exporting, national export strategy developm ent, public-private pa rtnerships, textiles 
and clothing, market analysis, South-Sout h trade, e-trade and sensitisation on WTO 
issues were among trade development areas of interest most frequently singled out by WT/COMTD/M/53 
Page 4  
 
 representatives.  The Group encouraged ITC in  its current "managed growth" strategy 
to ensure that both countries and ITC would develop the capacities to sustain and absorb growth.  Some representatives comp limented ITC for being referred to as a 
model for other organizations in the United Na tions system by the Office of Internal 
Oversight Services in its inspection report on ITC.   
The Group was also informed of the status of  the Joint Evaluation of ITC.  The final 
report would be available in June or July 2005 for a possible discussion at the Informal Joint Advisory Group meeting in November 2005.  
Before concluding, Mr. Chairman, allow me also to mention that at the 38
th session, 
as is the practice each year, governme nt representatives announced voluntary 
contributions to ITC.  On behalf of the Group I would like to express our thanks to 
the Governments of Canada, China, Denmark,  France, Germany, India, Italy, Japan, 
the Netherlands, Norway, Sweden and Switzerland for their support to the 
organization.     
Mr Chairman, this covers the main issu es discussed during the JAG session.  The 
Executive Director and I shall be happy to reply to any questions from members. 
Thank you Mr. Chairman. 
11. The Chairman  thanked Mr. Jürgens for his statement, and opened the floor for questions and 
comments. 
12. The representative of Canada  said that her delegation was particularly pleased by the way in 
which the Annual Report of ITC was being constan tly improved.  Her delegation was a strong supporter 
of ITC in terms of its re levance for trade and development.  She said that her delegation had high hopes 
for the joint evaluation, which was already showing so me interesting results, and was looking forward to 
the institutional strengthening and management handover.  
13. The representative of the United States  said that her delegation recognized the important need 
that ITC was fulfilling.  She said that the United St ates would continue to try to partner with ITC in a 
number of different areas. 
14. The Executive Director of  ITC, Mr Denis Bélisle , said that demand for ITC's services continued 
to increase.  Thanks to the generosity of donors, th e organization was in a position to respond to a great 
deal more requests than in previous years.  He also said that the WTO Secretariat had been very supportive of the work of ITC.   
15. The Committee took note
 of the report on the 38th session of the Joint Advisory Group and 
forwarded  it to the General Council for adoption. 
D. WORK PROGRAMME FOR 2005  (WT/COMTD/53) 
16. The Chairman  said that the proposed Work Programme  of the CTD for 2005 had been issued 
as document WT/COMTD/53. 
17. The representative of China  sought clarification as to why the agenda item on "Participation 
of Developing Countries in the Multilateral Tradi ng System" was included as an agenda item for the 
present meeting, as it had been on the agenda of a number of previous meetings of the CTD.  WT/COMTD/M/53 
 Page 5 
 
 
 18. The Chairman  clarified that the document WT/COMTD/W/136/Rev.1 had not as yet been 
fully discussed by the Committee, a nd that Members had requested that it be discussed at the present 
meeting. 
19. The Committee adopted  the Work Programme. 
E. NOTIFICATION UNDER THE ENABLING CLAUSE  
- Notification from Norway (WT/COMTD/N/6/ADD.3) 
20. The Chairman  said that Norway had issued a no tification – contained in document 
WT/COMTD/N/6/Add.3 – relating to its Generalized System of Preferences (GSP).  He invited the 
representative of Norway to introduce the notification. 
21. The representative of Norway  said that the Norwegian system had come into effect in 1971, 
and that the consolidated version had been no tified to the WTO in 2001.  The Least-Developed 
Countries (LDCs) had been granted duty-free and qu ota-free market access as of 1 January 2002 for 
all products when fulfilling the regular formal requi rements.  The exception list had been reduced as 
of 1 January 2005, as the products listed in th e notification document could now be imported 
duty-free from all developing countries for which the Norwegian GSP was implemented.  Norway 
was presently undertaking a review of its GSP syst em in order to consider further improvements. 
22. The Committee took note  of the notification. 
23. The Chairman  recalled that at the last meeting of the CTD the notification on "Framework 
Agreement on Comprehensive Econom ic Cooperation between the Association of South East Asian 
Nations (ASEAN) and China" – contained in documents WT/COMTD/N/20 and WT/COMTD/51 – 
had been considered.  He recalled that a numbe r of delegations had ra ised questions on the 
notification and the Agreement.  He inquired whet her the representatives of ASEAN and China were 
in a position to respond to those questions at the present meeting. 
24. The representative of Malaysia , on behalf of ASEAN, said she had no additional information 
to provide at the present meeting.  
25. The representative of China  said that he was under the impression that the review of the 
notification had been completed at the last session of  the CTD.  He said that questions from individual 
delegations had been referred to his capital. 
26. The representative of the European Communities  said his delegation was among those that 
had posed questions at the last meeting in relation to the notification of ASEAN and China.  He said that his delegation was still awaiting responses from the parties, and hoped that responses could be 
provided at the next meeting of the Committee, if not at the present meeting, so that the Committee 
could take note of them collectively.  He said that the process of review was a collective one, rather 
than a bilateral one between specific interested parties and the notifying parties. 
27. The representative of the United States
 said that her delegation had also asked some questions 
on the notification by ASEAN and China.  She said that her delegation viewed the exercise of reviewing the agreements that fell under the ambit of  the work of the CTD to be not simply a pro 
forma announcement process, but a true discussion.  Those who posed questions had a right to have 
answers provided to the Committee.  Her dele gation looked forward to having these responses 
provided at the next meeting of the CTD, and to further discussion if necessary on the responses.   WT/COMTD/M/53 
Page 6  
 
 28. The representative of China
 said that a discussion of the notification by ASEAN and China 
was not on the agenda for the present meeting.  He  said the understanding of his delegation was that 
the process of consideration of agreements betw een developing countries notified under the Enabling 
Clause was different compared to those considered by the Committee on Regional Trade Agreements.  
His delegation did not believe that it had an oblig ation to respond to questions, though it could be 
willing to provide responses on a bilateral basis. 
29. The representative of Malaysia  said the understanding of her delegation was that at the last 
meeting the Chairman had closed the discussion on this topic.  She said that the ASEAN countries 
would relay the contents of the present discussion to  their respective capitals and seek their views on 
whether  responses were required to the questions raised. 
30. The Chairman  said that at the last meeting of the CTD, the Committee had taken note of the 
notification and of all statements made, and some of  those statements contained questions.  That was 
why the issue had been raised  at the present meeting.  
31. The representative of the United States  said there was a substantial difference between the 
types of questions that had been posed at the l ast meeting of the CTD and the types of detailed 
questions that were posed during a formal review of a regional trade agreement.  She drew the 
attention of the Committee to document WT/COMTD /W/114, which indicated that Members should  
have the opportunity to ask questions and have th em answered by the notifying countries of a regional 
trade agreement notified under the Enabling Clause. 
32. The representative of China  said that if any information was provided by his capital relating 
to the questions that had been raised at the pr evious session of the Committee, he would like to 
provide the information bilatera lly, and not in the Committee. 
33. The representative of the European Communities  said that his delegation joined the 
delegation of the United States in expressing a str ong hope and expectation that the process of review 
of the notification by ASEAN and China would take place in the Committee. 
34. The representative of Malaysia  said she would appreciate it if those delegations that had 
posed questions provide them in written form, so that they could be forwarded to the capitals. 
35. The representative of China  wondered if the Secretariat could provide some clarification on 
the procedure relating to notifications of agreem ents between developing countries under the Enabling 
Clause.  In particular, he sought clarification as to whether there was a requirement to provide 
answers in the CTD to questions  raised on these agreements.  
36. The representative of the United States  drew the attention of the representative of China to 
paragraph 57 of document WT/COMTD/W/114.  
37. The Chairman  said that the CTD was the appropriate forum for discussion of notifications 
under the Enabling Clause.  While a response in some form was expected to the questions directed to 
ASEAN and China, he said that consultations coul d be held to decide how these responses would be 
provided.  He proposed that the Committee take not e of the discussion, and that he hold consultations 
with the relevant parties. 
38. It was so agreed .  WT/COMTD/M/53 
 Page 7 
 
 
 F. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO TRADE 
AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES  
39. The Chairman  said that he wished to start discussion on this item by giving a brief summary 
of the Committee's recent work.  He would then ope n the floor to hear the views of Members on how 
they felt work on this item should proceed. 
40. The Chairman said that at the 50th Session of the CTD, the Common Fund for Commodities 
had made a presentation on its work and on some of the challenges facing commodity-dependent countries.  In the ensuing discussion following the presentation, the possibility of other organizations 
working on commodity issues being invited to present their work was discussed.  Also discussed was 
the possibility of Members being invited to relate  to the CTD their experiences in managing their 
commodity trade.  
41. The Chairman said that at the two last meeti ngs of the CTD, the Committee had listened to 
two very interesting presentations, one by Malaysia – a Member that had experienced success in managing its commodity trade – and one by UNCTAD.   The Committee had also been able to have 
some very rewarding discussions on the issues ra ised in the two presentations.  He said that he 
believed that at the last meeting of the CTD, it had been agreed that at the present meeting the 
Committee would try to find an or ganization that could provide assi stance in identifying where the 
WTO could add value to the work being done in co mmodities, and also to hear from a Member that 
had experienced difficulties as a commodities exporter.   However, as the incoming Chairman, he felt 
that he wanted to consult once mo re with Members on where they would like to go with this agenda 
item.  
42. The Chairman listed some possible ways forw ard for the Committee's work on this item, 
based on discussions that had taken place at the last  meeting.  One possibility was to invite the 
Common Fund for Commodities once again to discu ss in greater detail the problems faced by 
commodity-producing countries.  A second possibility was to invite another international organization 
to present its work on commoditi es.  Names that had been discussed by the Committee included 
notably the FAO, the World Bank, and ITC.  A third possibility was to invite other Members to relate 
their experiences with commodities.  One suggestion, in  this regard, was that a Member that had had a 
less than positive experience could be invited.  A nother suggestion was that two presentations could 
be made – one from a Member that had faced difficulties, and another from a Member that had enjoyed success.  A final possibility was to invite one  or more private institutions to discuss their 
work on commodities.  He opened the floor to hear Members' views on how the Committee should 
proceed with its work under this agenda item. 
43. The representative of Kenya
 said that after hearing a success story, it would be useful to hear 
from a country that had faced difficulties due to dec lining prices of commodities.  In that regard, she 
recalled the subject of document WT/COMTD/W/113.  She said that a negotiating proposal on this 
subject would soon be ready for submission.  A copy  of the proposal would be forwarded to the CTD 
after it had been tabled in the relevant negotiating bodies. 
44. The representative of the United States  said that discussion under this item had been very 
fruitful at the last meeting.  She said that her delegation would be interested to hear from a country that had had difficulty in managing its commodity trade, as that might help add further depth to the discussion.  She said that it was important that  the discussion focus on where the WTO had a 
particular relevance, and what the Organization coul d and could not do on the issue.  She said that 
while she had no objection in hearing from another inte rnational organization, it would also be useful 
to hear from a private institution active in the field of commodities.   She welcomed the information 
provided by the delegation of Kenya that a proposal  would soon be tabled, and inquired whether the 
proposal would be tabled in the NAMA negotiations  as well as in the agriculture negotiations.  WT/COMTD/M/53 
Page 8  
 
 45. The Chairman
 inquired whether the representative of  the United States had any specific 
proposals about which private institutions could be invited to the CTD. 
46. The representative of the United States  said that she would be happy to provide a list of 
possible institutions.  
47. The representative of Australia  said that her delegation had found the presentation from 
Malaysia very useful and informative.  Her delega tion would be comfortable to continue the process 
by listening to presentations by other countries that had had different experien ces.  Her delegation was 
flexible as to whether another international organi zation or a private institution could be invited to 
make a presentation, and would be willing to discu ss further as to which institution would be most 
appropriate for that purpose. 
48. The representative of Canada  said that her delegation wished to continue the interesting 
dialogue that had recently taken place under this agenda  item.  She said that an institution that could 
possibly be invited was the International Task  Force on Commodity Risk Management.  The 
institution had, among other activities, been piloti ng the use of market-based risk management 
instruments to help developing country producers mitigate the impacts of commodity shocks.  
49. The representative of Kenya , in response to the question from the United States, clarified that 
the proposal she had mentioned earlier would also address the NAMA negotiations, given that the classification of some commodities changed through processing.  With regard to the presentation by 
the Common Fund for Commodities at an earlier session of the CTD, she wondered whether this had 
been a detailed presentation, or simply an overview of the work of the institution. 
50. The representative of th e European Communities
 said that, based on the discussion that had 
taken place, his delegation was flexible about whic h institution could be invited to the CTD.  The 
proposal of Canada to invite the Internationa l Task Force on Commodity Risk Management was 
certainly welcomed. 
51. The representative of Egypt  supported the idea of having a presentation from a country that 
had had a less than positive experience in managing its  commodity trade.  He also supported the other 
proposals that been made, in particular the possib ility of inviting the International Task Force on 
Commodity Risk Management, as well as a private institution.  He welcomed the tabling in the 
agriculture and NAMA negotiations of the proposal  mentioned by the representative of Kenya. 
52. The Chairman  said that he would continue consu lting with Members about how to move 
forward with this agenda item.  He proposed inv iting for the next meeting a country that had had 
difficulty in managing its commodity trade, a privat e institution or an intern ational organization.  
53. It was so decided . 
G. PARAGRAPH 51 OF THE DOHA DECLARATION ON IDENTIFYING AND DEBATING 
DEVELOPMENTAL ASPECTS OF THE NEGOTIATIONS , IN ORDER TO HELP ACHIEVE THE 
OBJECTIVE OF HAVING SUSTAINABLE DEVELOPMENT APPROPRIATELY REFLECTED  
54. The Chairman  said that, as incoming Chairman, he wish ed to once again seek the input of the 
Membership on how the Committee should move  forward with this agenda item.  
55. The Chairman said that debate and discussion had continued for some time on how the issue 
should be treated in the CTD.  The Secretariat had been invited to make presentations on the 
developmental aspects of the WTO's work in a nu mber of areas.  The most recent examples of 
presentations included the developmental aspects of the Dispute Settlement negotiations, the  WT/COMTD/M/53 
 Page 9 
 
 
 developmental aspects of the Ne gotiating Group on Rules, and the developmental aspects of the 
negotiations on Regional Trade Agreem ents.  He said that, in the fi nal analysis, the Committee's work 
should be Member-driven.  He, therefore, sought Me mbers' inputs on how to move forward with this 
item in the CTD.  More specifically, he proposed that all delegations coul d communicate with their 
respective capitals, and that the agenda item be re-v isited at the next meeting of the Committee.  He 
said that inputs from the capitals would certainly  provide guidance on how to proceed with the item 
and would also enrich the Committee's discussion.  He  opened the floor to hear the views of Members 
on his proposal, and more generally on how  to proceed with the agenda item. 
56. The representative of Kenya  said her delegation would have no problem in consulting with 
the capital on this agenda item.  She also wonde red whether it would be useful to explore how 
paragraph 51 of the Doha Ministerial Declaration could assist Members in reflecting the 
developmental components of the negotia tions in the July approximation. 
57. The Chairman  said that the difficulty he foresaw in the proposal by the delegation of Kenya 
was the time constraint.  Several delegations woul d also be overworked in the coming weeks in the 
process of finalizing the July approximation.  He, however, certainly recognized the importance of the 
CTD's mandate in paragraph 51. 
58. The representative of the United States  said it was unlikely that the Committee would be able 
to do much on this agenda item before the fall.  Howe ver, in preparation for a bit more of an oversight 
in the fall, she said that it might be useful for th e Committee to have before it for its next meeting a 
summary and explanation of all the development-re lated issues that were being discussed in the 
different groups to see where and how they were being addressed.  Some of the development-related 
issues were being addressed in a number of places, but perhaps with different perspectives.  Some 
issues were being addressed and raised by developing  countries in one negotiati ng group or another.  
It would be useful, therefore, to have an overview of  what issues had been raised in order to sort out 
the status of the discussions.  This would allow th e Committee, at its next meeting, to have a more 
holistic discussion from a development perspective.  
59. The representative of Kenya  said that the idea of a summary was a good one, but she 
wondered what the objective of the summary would be.  A focus on market access issues would be 
useful, as her delegation attached a lot of importance to those issues.  The summary could, therefore, 
look at the developmental aspects of NAMA, agricu lture and services before the finalization of the 
July approximation.  She also sought clarifica tion from the Chairman on what delegations were 
expected to consult their respective capitals about.   
60. The Chairman  said that in his view it would be mu ch better for the delegations to take a 
pro-active role in the discussion under this agenda ite m.  As he understood it, the Secretariat had up to 
now been providing the Committee with informa tion, and not much detailed discussion had taken 
place.  He believed that this was the time to get instructions from capitals on how to go forward with 
this item.  This would make the exercise more Membe r-driven, rather than Secretariat-driven.  Even if 
a summary of the developmental aspects of the ne gotiations in the various bodies were provided by 
the Secretariat, he believed that it was still necessary to get instructi ons from capitals to get an idea of 
the views of Members.  It was also necessary for the exercise to be a strongly Member-driven one 
from the present time onwards if the CTD was to be successful in fulfilling its mandate under 
paragraph 51. 
61. The representative of the United States  clarified that her proposal was not to prepare the 
summary just for the purpose of having a su mmary.  The Committee had had a report from each 
negotiating group over the course of a year and a ha lf, and the issues in those groups had evolved 
substantially.  She said that the summary did not ha ve to cover the entire negotiations, and that the 
suggestion of Kenya to just focus on NAMA, agri culture and services might be appropriate.  She said WT/COMTD/M/53 
Page 10  
 
 that her idea was to focus on the progress that had been made since the Committee talked to 
Secretariat representatives from the different groups.  The point was to see if the CTD could have a 
deeper discussion on some of those issues.  She reco gnized that it was difficult for many in the CTD 
to have a deep discussion on the precise proposals that  were tabled in the various negotiating bodies, 
as not all representatives were experts in those areas.   Nevertheless, she suggested that the Committee 
could at least see if there were some common themes or some issues where it could have a more 
in-depth and broader discussion, not just from a precise negotiating perspective, but also from a developmental perspective. 
62. The representative of the European Communities
 said that all delegations were in the same 
position of asking how the mandate given to them coul d be better fulfilled.  From the perspective of 
his delegation, this was certainly an exercise whose potential had not been fully realized.  His 
delegation certainly wanted to utilize that potential mo re fully.  He believed that at the last Committee 
meeting, the suggestion had been made to go back to the series of individual presentations that had 
begun some time ago, in order to see what had ch anged in NAMA and other groups.  He was certain 
that this was an idea that his delegation would no t reject. He said that the representative of the 
United States had come up with a different idea,  a more ambitious idea in terms of tracking or 
identifying the different strands of the negotiations.  He said that the idea of the representative of the 
United States certainly merited strong considera tion, though he believed that, being a new idea, 
delegations would need to reflect on it.  He said that delegations would be  negotiating intensively 
between now and the Committee's next meeting in Oc tober, and would also be negotiating intensively 
in the run-up to the Ministerial Conference in Dece mber.  The Committee was, therefore, looking at a 
moving target, but had to accept this and see what it could do in providing its own consideration and 
input on the development-related aspects of paragr aph 51.  He did see some immediate merit in the 
idea of the United States to have a stock-taking before the Ministerial Conference, but whether it could actually be put together in a way that was useful might need a certain amount of reflection.   
63. The representative of Haiti
 said that his delegation believed that there was a problem of 
methodology, as development and sustainable developm ent were very complex concepts.  He said that 
in his view the Committee needed to have a debate on the concept of sustainable development in order 
to look at the various aspects of this concept and th e tools that could be used to achieve and to build 
on it.  In relation to the request of the Chairman fo r delegations to consult their respective capitals, he 
said that different Members had different viewpoints as to what was sustainable development.  He  
believed, therefore, that delegati ons should give some guidelines to their capitals before asking them 
to provide specific answers. 
64. The Chairman  said that the CTD's mandate on paragraph 51 had not been fully realized, and 
that the Committee had not been moving very fast on  this issue.  His proposal was that the Committee 
request a presentation from the Secretariat on the developmental aspects of the main market access 
negotiations, which included NAMA, agriculture and services.  He also proposed that delegations 
request a detailed brief from their capitals on the de velopment dimension in the three areas.  This 
would allow the Committee to have a detailed discuss ion about the developmental perspectives of the 
negotiations.  He said that the other issue to settl e was when the discussion would take place.  A date 
had been blocked in July for the CTD to meet, but  the question remained as to whether a meeting in 
July would lead to a productive outcome, given the in tensity of the negotiations that were anticipated 
around that time.  The other possibility was to take the July approximation in to account, and have the 
discussion at the CTD meeting scheduled in October.  
65. The representative of Brazil  wondered if the topic could be enlarged beyond the traditional 
market access areas like NAMA, agriculture and services, to other areas of the mandate.  There were other tracks where the developmental aspects were quite strong, for example in the implementation 
area.  He suggested that the Secretariat could pick  up on all the areas where there were developmental  WT/COMTD/M/53 
 Page 11 
 
 
 elements, including the Special Session of the CTD in which there were several proposals related to 
development. 
66. The representative of Canada  said that her delegation was thinking along the same lines as  
Brazil.  She said that when the delegations reported to their respective Ministers, they would have to  
report on the developmental aspects at large.  Oct ober would be a better time to hold the discussion, 
as the discussion would then cover a broader area.  She said that inclusion of discussions taking place 
in the Dedicated Session on Small Economies would allow a more complete feeling of what was going to be accomplished in the development area. 
67. The Chairman
 proposed that a very comprehensive re view be undertaken at the next meeting 
of the Committee in October.  
68. It was so decided . 
69. The representative of Haiti  inquired whether delegations were expected to request the 
responses from capitals before October, or if they were supposed to wait until the debate in October. 
70. The Chairman  said that delegations should get in structions from capitals, and that a 
comprehensive discussion would take place in October. 
71. It was so decided . 
H. ELECTRONIC COMMERCE  
- Presentation by the Internationa l Telecommunications Union (ITU) 
72. The Chairman  recalled that the Committee had earlier agreed to invite the International 
Telecommunications Union (ITU) to make a pres entation on the role of electronic commerce in 
development, particularly in the context of prep arations for the second phase of the World Summit of 
the Information Society, which would take place in  Tunisia later in the year.  He was pleased to 
inform the Committee that a representative of ITU, Mr. Alexander Ntoko, Chief of the E-Strategies 
Unit in the Telecommunications Developmen t Bureau, had kindly accepted the Committee's 
invitation, and was in attendance at the present meetin g.  He invited the representative of ITU to make 
his presentation. 
73. The representative of the ITU  said that in the area of information and communications 
technologies (ICTs) and their relation to developmen t, ITU's objectives included exploring ways to 
use ICTs to reduce the social divide, improve the quality of life and facilitate entry into the 
information society for developing countries;  le veraging the potentials of Internet as a low-cost 
channel for the delivery of societal applications fo r various sectors;  creating favorable conditions in 
policies, strategies and e-legislation to foster th e development and use of ICT applications;  and 
building awareness and enhancing trust and secu rity in the use of ICT applications. 
74. The ITU was addressing the technical and policy i ssues related to the development of Internet 
and e-applications through projects and events;  by coordinating the design, development and 
implementation of projects on e-commerce, e-gove rnment, e-health, e-security, e-learning and 
e-agriculture, etc .;  by providing guidance in the elabora tion of national and regional policies, 
strategies and e-legislation through workshops and seminars;  by implementing multipurpose 
community telecenters (MCTs) projects to enable affo rdable access to ICTs applications and services;  
by promoting the development of solutions to  enhance trust and security through project 
implementation and by building basic awareness of ICTs potentials for policy makers and the general 
population. WT/COMTD/M/53 
Page 12  
 
 75. The ITU's work in ICTs was governed by the Strategic Plan of the ITU adopted by 189 
Member States of ITU at the 2002 Plenipotentiary Conference (PP02), and the various decisions of 
ITU Member States adopted at the World Telecommun ication Development Conferences.  There were 
three main purposes and six main priority areas.  The three main purposes were to reduce the social 
divide;  improve the quality of life and facilitate en try into the information society.  The six main 
priority areas were: 
• Internet Protocol: Policy and technical aspect s of Internet Protocol (IP) networks and 
services;  
• ICT Applications:  E-services/applica tions (e.g. e-government, e-commerce, 
e-agriculture, e-health, e-learning, e-cinema, tele-working); 
• MCTs and multipurpose platforms (MPPs);  
• E-legislation:  Favorable legal e nvironment for the development of 
e-services/applications;  
• E-Security:  Enhancing security and confiden ce in the use of public networks for ICT 
applications;  and  
•  ICT Awareness:  Enhancing ICT liter acy and building public awareness. 
 
76. Recent additions to the ITUs work in ICTs had come out of the decisions taken at the last 
World Telecommunication Development Conference,  which had taken place in Istanbul.  The 
additions included an extension of ITU activities to  new areas such as e-agri culture, e-government and 
cyber security; the identification of very strong  synergies with the adopted World Summit on the 
Information Society (WSIS) Plan of Action, notably  in the domains of ICT Applications, Internet, 
Cyber Security, and Access to ICTs for All;  the endorsement of the Purpose and Objectives by the 
WSIS Plan of Action;  and specific projects for people with special needs . 
77. The ITU was undertaking projects in e-government  with objectives that included increasing 
government transparency, enabling transaction-ba sed e-government services, and having secure 
document transmission between government agencies. In the area of e-business, projects had the 
purpose of assisting countries in the design, devel opment and implementation of e-business solutions. 
Similarly with regard to e-payment, projects aimed to assist in the design, development and 
implementation of infrastructure for credit card- based e-payment solutions for e-commerce and 
e-government transactions.  
78. The ITU's work in e-health was concerned with  providing a forum for the exchange of best 
practices in the implementation of e-health projects;   developing guidelines a nd elaborating strategies 
at the global level in fostering e-health services;  and working with industr y partners, international 
organizations and governments to assi st developing countries in e-health projects.  The ITU was also 
working in e-medicine by using ICTs to bring access to medical services su ch as remote diagnostics 
and tele-radiology.  
79. In the area of e-education, the ITU's work wa s enabling youths to gain access to a wide range 
of information via the Internet, while enhanc ing knowledge-building and ensuring their active 
participation in the information society.  In e-agri culture, the  ITU was assisting with the use of ICTs 
applications and infrastructure to enhance agricu ltural activities and gain access to information on 
better farming methods, up-to-date prices of produce and information on business partners.  
80. In the field of e-security, the ITU was worki ng on advanced security solutions using digital 
signatures and finger print biometric authentication for critical e-government transactions.  The ITU was working in the building of e-trust through the de velopment of models to build trust in a virtual 
world, thereby enabling people to conduct critical transactions which they would otherwise not be 
willing to do.   WT/COMTD/M/53 
 Page 13 
 
 
 81. The ITU was also involved in projects in the area of e-environment, as a supporting 
organization for the industry-led Global e-Sustai nability Initiative (GeSI), and in undertaking 
activities with UNEP aimed at addressing the environmen tal effects of telecom and ICTs;  in addition, 
ITU was working with Member States to develop strategies on the use of telecommunications and ICTs for the protection of the environment.  In e-employment, ITU was working to improve social 
conditions by increasing income through the pr ovisioning of ICT-enabled remunerated remote 
translation and document processing services.  The ITU was also assisting several countries in establishing harmonized e-legislation and el aborating national legislation on ICTs. 
82. The ITU organized several events to bring t ogether its Member States to address regional 
policies and strategies for ICTs.  The organizati on also provided training materials to address 
technical and policy issues in Internet Protocol (i ncluding IP telephony), and issued case studies and 
best practices on the elaboration of national and re gional strategies for communications in rural and 
remote areas. 
83. A non-exhaustive list of ITU activities for 2005 was as follows: 
• Internet and e-Applications:   
e-Government:  Barbados, Bosnia & Herzegovi na, Bhutan, Cameroon, Jamaica, Kyrgyzstan, 
Papua New Guinea, and Rwanda.  
 Internet:  Oman, Lebanon, Burkina Faso and Rwanda  e-Health:  Ghana, Venezuela and Turkey 
MCTs:  Afghanistan, Malawi, Niger, Ro mania, Solomon Islands and Samoa.  
e-Commerce:  Legal issues for Tanzania, Trai ning for Mongolia and project implementation 
for Cameroon.  
• Seminars and Workshops:  Cyber Security Seminar for Europe, Cyber Security Seminar for 
Latin America, WSIS Thematic Mee ting on Cyber Security in Geneva. 
• Publications:  Internet Protocol Policy Manual,  Road Map for ICT Development for 
Americas Region, Guidelines for the Implementa tion of E-Health Projects, Cyber Security 
Manual for Developing Countries. 
 
84. The Chairman
 thanked the representative of ITU for hi s presentation, and opened the floor for 
questions and comments. 
85. The representative of the United States  inquired whether the ITU in its work had come across 
cases of countries that had used ICTs to develo p export capacity, but had not been successful in 
integrating that capacity and the knowledge gained  into the domestic economy, thereby leading to 
losses to the domestic economy and to productivity growth. 
86. The representative of ITU  said that ITU itself did not have th e mandate or expertise to explore 
trade-related issues.  The ITU had, however, recen tly launched an initiative with a number of other 
international organizations with e xpertise in various fields, includ ing trade.  The objective was to 
develop certain indicators to better understand the impact that ICTs had had on the economies of 
various countries, and how countries could be tter integrate ICTs  into the economy. 
87. The Committee took note  of the presentation and of the in tervention by the United States. 
88. The Committee agreed  to revert to the agenda item concerning electronic commerce in the 
future only if requested to do so by Members. WT/COMTD/M/53 
Page 14  
 
 I. G
RADUATION OF THE MALDIVES FROM LDC  STATUS (WT/COMTD/52) 
89. The Chairman  recalled that this item had also been on the agenda of the previous meeting.  
However, since the delegation of Maldives had not been able to travel to Geneva to be present at that 
meeting, it had been decided that the issue would be taken up again at the present meeting.  He invited 
the representative of Maldives to take the floor. 
90. The representative of Maldives  said that his delegation had in 2004 put to the Committee the 
issue of the graduation of Maldives from LDC status.  In particular, his delegation had highlighted in 
document WT/COMTD/W/128 the benefits of prefer ential treatment that Maldives enjoyed as an 
LDC and the consequences of graduati on, particularly with regard to the loss of these preferences.  
Possible approaches that could be taken by the WTO,  as well as by Maldives' most important trading 
partners, had been discussed.  His delegation had in formed the Committee that  the relevant body of 
the United Nations was most likely to recommend the graduation of Maldives.  On that basis, his 
delegation's submission to the WTO called for the establishment of a tran sition mechanism through 
which trade preferences that had been granted to  Maldives could remain in place for some time. 
91. The representative of Maldives said that the tsunami that had struck his country in 
December 2004 had changed many things.  He said th at it had set back his country's development by 
at least a decade.  In his delegation's recent submission (WT/COMTD/52), the difficulties faced by Maldives as a consequence of the tsunami had been highl ighted.  In light of the effects of the tsunami, 
Maldives was of the view that it was not appropriate  for it to be graduated from LDC status at the 
present time.  Maldives would be in need of plenty  of resources, support and time before it could once 
more be at the stage of development it had reached before the tsunami struck.  In view of the 
circumstances, his delegation did not feel it was appr opriate at this time to continue discussion on the 
content of document WT/COMTD/W/128.  
92. The representative of Maldives said that his delegation appreciated that graduation was not a 
decision to be taken by the WTO.  Nevertheless, as laid out in document WT/COMTD/52, it was felt 
that there were certain things that could be done in the WTO context.  In particular, the Organization 
could acknowledge that Maldives was not ready for graduation, and was, therefore, not in a position 
to lose its trade preferences.  His delegation also welcomed discussion on any other action that could be taken by the WTO. 
93. The Chairman
 thanked the representative of Maldives for his statement, and opened the floor 
for questions and comments.      
94. The representative of the United States  said that her delegation appreciated that the 
Government of Maldives needed to re-think its pos ition in light of the tsunami.  Her delegation was 
ready to work with others to consider whether there could be an appropriate WTO response.  Her 
delegation also appreciated that Maldives had pr esented to the Committee issues relating to its 
graduation from LDC status. 
95. The representative of India  said that his delegation unders tood the situation faced by 
Maldives.  He brought to the attention of the Committee the United Nations  ECOSOC resolution of 
November 2004, which called upon all trading partners  of a graduating country to consider extending 
trade preferences previously made available as a resu lt of its LDC status, or reducing them in a phased 
manner in order to avoid their abrupt reduction.  The tsunami had, however, struck after this 
resolution was passed, and his delegation was keen to  work with Members to see how the WTO could 
help Maldives.  WT/COMTD/M/53 
 Page 15 
 
 
 96. The Chairman  also recalled that the Director-General of WTO had sent a letter to all 
Members after the tsunami, asking that they explore how they could help Members affected by the tsunami. 
97. The representative of Canada
 said that her delegation had great sympathy for Maldives and 
other tsunami-affected countries.  Canada was heavil y involved in the reconstruction efforts in these 
countries.  With regard to the issue of Maldives' graduation, she said that th at was a decision to be 
taken by the relevant body of the United Nations.  Her delegation was, however, prepared to work 
with Members to find ways to he lp Maldives in the WTO context. 
98. The representative of the European Communities  said that his delegation understood the 
situation faced by Maldives.  He said that if a d ecision to graduate Maldives was to be taken in the 
relevant body of the United Nations, so must a deci sion to reverse that process.  His delegation was 
appreciative of the information provided by Maldives  on its graduation.  He said that it was in the 
interest of WTO to support a smooth graduation process so that LDCs were not put off by the 
prospect of graduating in recognitio n of successful economic development. 
99. The representative of Thailand  said that his delegation was sympathetic to the situation faced 
by Maldives.  His country had also been gravely a ffected by the tsunami.  His delegation was willing 
to work with Members to find ways to help Maldives within  the WTO framework. 
100. The Chairman  summed up by remarking that there was much understanding and sympathy in 
WTO regarding the difficulties Maldives was going thr ough.  There was, however, also a recognition 
that WTO was not the correct forum to discuss graduation from LDC status.  That being said, certain initiatives on the trade side could certainly be considered in the WTO. 
101. The Committee took note
 of the statement by Maldives and of all interventions.     
J. PARTICIPATION OF DEVELOPING COUNTRIES IN THE MULTILATERAL TRADING SYSTEM 
(WT/COMTD/W/136/R EV.1) 
102. The Chairman  recalled that the Secretariat had prepared a note last year circulated to 
Members as document WT/COMTD/W/136/Rev.1.  The note had been prepared to assist the 
Committee with its requirement to keep under conti nuous review the partic ipation of developing 
economy Members in the multilateral trading system.  At the last meeting of the CTD, it had been agreed that discussion on the paper would be deferred,  so as to allow Members time to read it in more 
detail.  He invited the Secretariat to present the paper. 
103. The Chief of the International Trade Statistics Section
 made the following presentation: 
The paper highlights salient features of developing economy trade, focusing mainly 
on the period 2000-2003.  The Appendix contains a series of specific tabulations that 
are not referred to in the text, but that delegations may find useful.1 
I. Main results I would like to refer to Chart 1. Deve loping economies experienced a more than 
twofold increase in their merchandise trade over the period 1990-2000.  Both their 
exports and imports grew faster than world trade, increasing the respective shares in 
                                                     
 
1 Data published in this document (except where otherwise indicated) are derived from the WTO's 
International Trade Statistics Report 2004 and the online WTO's Statistics Database 
(http://www.wto.org/english/res_e/statis_e/statis_e.htm).  WT/COMTD/M/53 
Page 16  
 
 global trade from 23 per cent to 30 per cen t and from 21 per cent to 26 per cent for 
imports.   
While the developing economies' share in world trade dropped slightly from 2000 to 
2001 due to the burst of the IT bubble, it rec overed moderately in 2002.  In 2003, the  
dollar value of developing economies' e xports soared by 17 per cent, reaching 
US$2.2 billion, and bringing their contribution to world exports back to 30 per cent, 
the 2000 level.  In 2004, strong commodity prices and the recovery of trade in office and telecom equipment resulted in a further surge of the share to 31 per cent -- the highest level since 1950. 
While developing economies' imports experienced a decrease in 2001 followed by a 
recovery afterwards, their share in world imports remained steady at about 
26 per cent throughout the period. 
Behind these aggregate figures, the performances of developing regions and 
economies varied widely: 
As you can see in Chart 2, within the de veloping economies exports, developing 
Asia's share increased while that of Lati n America decreased.  While the IT bubble 
collapse worsened the trade performan ce of a number of Asian economies as 
mentioned earlier, this was more than compensated by China's buoyant export growth.   
Depressed economic conditions in Latin Amer ica affected a majority of economies in 
the region, whose annual export growth decreased, or was sluggish at best.   
While Latin America's contribution to deve loping economies' total exports shrank by 
two percentage points, the shares of exports from Africa and the Middle East in total developing economy exports remained vi rtually unchanged (8 per cent and 
14 per cent respectively). 
For Africa, fuels remained by far the main component of the region's exports. 
Sub-Saharan countries account for a large majority of the region's agricultural 
exports.  Manufactures is still a small component of their exports.   
For the Middle East, fuel continues to be the dominant component of exports .  
Chart 3 shows that between 2000 and 2003, the share of South-South trade in 
developing economies' total exports increas ed to 38 per cent, and developing Asia 
became the largest market for developing economy exports.  This reflected China's 
growing demand for foreign pr oducts, as well as the sluggish increases in exports to 
major developed partner re gions, namely North Amer ica and developed Asian 
economies.  
  
 
  WT/COMTD/M/53 
 Page 17 
 
 
 In Chart 4, you can see that the produc t composition of developing economies' 
exports did not change significantly be tween 2000 and 2003.  Non-fuel primary 
commodities2, fuels and manufactures accounted respectively for about 12 per cent, 
20 per cent and two thirds of total exports.   
While developing economies have been net e xporters of merchandise to the rest of 
the world since 1998, they have been impor ting more commercial services than they 
export.  Over the period 2000-2003, the shar e of developing economies in world trade 
of commercial services has declined (from 23 per cent to 21 per cent on the exports 
side, and from 26 per cent to 25 per cent on the imports side).  This contrasted with the 1990s, where the developing economies' share in world trade in services was 
increasing on average. 
New calculations actually show that the share of commercial services exports of 
developing economies remains constant at a bout 22 per cent on the export side during 
the 2000/03 period and for imports the share in 2004 increases again to 26 per cent -- 
roughly, one fifth of the exports and one quarter of the imports.  
II. Least-Developed Countries (LDCs) 
Following five years of steady growth, the participation of LDCs in world trade, 
measured as their share in world exports, decreased slightly to 0.6 per cent in 2003. 
The latest figure for 2004 is 0.7 per cent.  The aggregate export performance of LDCs in 2002 and 2003 has been positive, with growth rates of 8 per cent and 13 per cent respectively.   
However, the aggregate growth rates hi de a substantial variation in export 
performance across LDCs.  The growth rate  of oil exporters, the most important 
export group, was 16 per cent and that of exporters of manufactures and commodity exporters was 9 per cent and 12 per cent respectively.   
104. The Committee took note
 of the report prepared by the Secretariat. 
K. PRESENTATION BY THE NEW PARTNERSHIP FOR AFRICA 'S DEVELOPMENT (NEPAD)  
SECRETARIAT  
105. The Chairman , in introducing this item, said that NEPAD was a development policy 
framework which had been adopted by African Heads of  State and Government in July 2001.  It was a 
commitment by African leaders to eradicate poverty and to place Africa on a path of sustainable growth and development.  He recalled that the H ead of the NEPAD Secretariat had been invited to 
make a presentation to Members at the 41
st Session of the CTD in July 2002, and that this had been 
considered to be very useful.  In recent contact s that had taken place be tween the WTO Secretariat 
and the NEPAD Secretariat, it was considered that it  could again be useful to have such a presentation 
given to the CTD by the NEPAD Secretariat.  With  this background, the Chairman gave the floor to 
the representative of NEPAD, Ambassador Ibrahim Ali Hassan, Egypt's Personal Representative in 
the NEPAD Steering Committee.  
                                                      
2 Defined as agricultural products plus mining products, excluding fuels.  The product classification 
used in this report is based on the one applied in the WTO International Trade Statistics 2004 (except where 
otherwise indicated).  Among others, the definition of agri cultural products differs from the definition applied in 
the WTO trade negotiations on market access in agriculture.  One of the major differences is the inclusion of 
fish and fish products in the former but not in the latter. WT/COMTD/M/53 
Page 18  
 
 106. The representative of NEPAD
 made the following statement: 
Mr. Chairman, Excellencies, Distinguished Delegates, I would like to express my thanks and appreciation to the WTO Secretariat for giving 
me this opportunity to speak on behalf of  the NEPAD Steering Committee and to be 
here today to share with you some of the developments with regard to the Initiative. 
First of all, I would like to introduce myself.  My name is Ambassador Ibrahim Ali 
Hassan, Egypt's Personal Representative in the NEPAD Steering Committee.  For those who are not familiar with the NEPAD Governance Structures, the NEPAD Steering Committee is a body that is comprised of the personal representatives of the twenty NEPAD Heads of State and Government Implementation Committee 
entrusted by the AU Summit to promote and follow up the implementation process of 
the NEPAD.  The Steering Committee acts  as a clearing house and provides support 
to the Heads of State Implementation Committee, in terms of decision making and taking, insofar as NEPAD is concerned. 
Our meeting today is the first to be held with the WTO Committee on Trade and 
Development since July 2001 when my colleague Prof.  Wiseman Nkhulu, in his 
capacity as the chairman of the NEPAD Steering Committee, was given the opportunity to brief this very body on the Initiative.  I need not remind you that, at that time, the initiative had just seen the light after its endorsement by the African leaders in what was then the Organization of  African Unity.  In this regard, I think a 
comprehensive update on the in itiative would be in order. 
It is also an opportunity to have an honest  and genuine exchange of views as to how 
we, as the NEPAD Steering Committee, could assist and compliment your work so as to ensure that Africa's interests are ultima tely achieved and realiz ed.  We have had a 
very constructive conference in October last year, to assess the impact of NEPAD after three years of its inception.  Basically, we were trying to reach out to our 
stakeholders, i.e. civil society, academia, the private sector and even our development 
partners, with a view of having a critical assessment of what NEPAD has and has not 
been able to achieve so far.   One cannot think less of the interaction that we have 
today.  It will surely help in guiding the vision that we all have a stake in making it a success. 
When NEPAD was first conceived on the ev e of the new millennium, it was evident 
that a comprehensive and radical approach  was needed to reverse the backwardness 
that Africa has suffered from for decades.  Our continent has been plagued by the 
entrenchment of a vicious cycle, in which economic decline, negative rates of growth, 
reduced capacity, and poor governance reinfo rce each other, entrenching Africa's 
peripheral and diminishing role in the wo rld economy and world affairs in general. 
In such circumstances, it was imperativ e that African leadership assumes its 
responsibility, realizing that, if  Africa is to claim the 21
st century, an integrated and 
coordinated plan that tackles the root ca uses of Africa's underdevelopment should be 
formulated.  A plan that would speak realis tically to the problems of Africa, having 
the principle of ownership engrained in its  fabric, and ensuring an international 
engagement in the problems of Africa, based on the principle of partnership, instead 
of the old donor-recipient relationship.  WT/COMTD/M/53 
 Page 19 
 
 
 As we stand here today fours years after, we could say that through the NEPAD, we 
have been able to put Africa back to it s rightful place on the international agenda, 
after being relegated to the back seat in the "lost decades".  For the first time, the 
International Community and the United Na tions System have been invited to 
structure their support, all of their support,  to an African-made, African-owned and 
African-led Development plan, which is NEPAD.  In 2002, the United Nations 
General Assembly (UNGA) adopted three resolutions formally recognizing NEPAD 
as the framework for development in Afri ca.  UNGA resolutions 57/7 calls upon all 
United Nations Programs and Specialized Agencies, together with developed 
countries and all other regional and internati onal institutions operating in Africa, to 
work within the context of the NEPAD po licy framework and to coordinate their 
activities according to the NEPAD priorities. 
In devising this very important initiative, we reckoned that Africa needs to achieve a 
growth rate of 7 per cent at least from 2001-2015, in order for Africa to be put on a path of sustainable development.  Even t hough, this has not been the case in the past 
four years, an increasing number of countries are moving in that direction.  It is 
estimated that Africa needs additional resour ces to the tune of 64 billion US Dollars 
annually, in order to provide the necessary investments to attain this ambitious goal 
of 7 per cent growth.  So, the question is where will the resources come from?  Our 
strategy perceives 4 primary resources: 
Increased Official Development Assistance (ODA)
.  After a relative period of 
decline, ODA towards Africa has witnessed some increase in the past few years to 
reach 21 billion dollars in 2003, but still not  enough.  While hoping that this trend 
will further strengthen, we are also calling for better aid effectiveness. 
Increased Foreign Direct Investment to the continent .  As it currently stands, FDI to 
the continent has risen to 12 billion US  dollars.  A figure which is still 
disproportionate to the African Potential. 
More Debt relief .  This could be achieved through the enhancement of the HIPC 
initiative.  Surely, improvements in th e initiative could release additional resources 
needed to finance development programs. 
Increased Market Access .  It is obvious that Africa would benefit from increased 
market access, in terms of increasing incom es and thus alleviating poverty in Africa, 
especially in the rural sector. 
NEPAD has highlighted, right from the beginning, the fact that for any development 
plan to succeed in Africa –no matter how well thought out it is– it has to address the issue of peace and security, as well as im proving the status of governance on the 
continent.  That is why consolidating Peace and Security in Africa tops the agenda of 
NEPAD.  We have developed, together  with the AU Commission, the AU/NEPAD 
Peace and Security Agenda, according to our  African priorities.  The establishment of 
the Council of Peace and Security in the African Union, is another manifestation of Africa's solid determination to strengthe n peace and security in the continent. 
Moreover, we have established the African  Peer Review Mechanism (APRM), which 
is considered by some as one of the mo st prominent achievements of the NEPAD 
process.  For the first time, African countries are committing themselves to a 
self-monitoring mechanism, intended to fost er the adoption of policies and practices 
that will lead to political stability, high economic growth, sustainable development WT/COMTD/M/53 
Page 20  
 
 and accelerated sub-regional and continenta l economic integration.  Twenty-five AU 
member states have so far acceded to the APRM, and the review process which 
started in July 2004 will produce its first reports in early June 2005 in a process 
which will eventually cover all participating states according to an agreed timetable. 
This leads me to my second point which is our strong focus on rural and agriculture 
development.  We know that most of our  economies are rural economies and depend 
largely on the agriculture sector.  We, th erefore, deem that for any meaningful 
development to take place in Africa, agri culture should be at the forefront.  The 
central role that agriculture plays in Afri can economies, is clearly illustrated in its 
contribution to the African GDP at 25 per cent, its share in export earnings which 
stands at 40 per cent, and its absorption of  about 70 per cent of the African labor 
force.  It is, therefore, only reasonable that NEPAD should focus first and foremost 
on agricultural development.  We have formulated the Comprehensive Africa 
Agricultural Development Program, co mmonly known as the CAADP, as our 
response to this challenge.  The CAADP sets out four key areas for action:  
(a) extending the area under sustainable la nd management and reliable water control 
systems (increasing the area under irrigation – new and rehabilitated – to 20 million hectares and improving land management of the same area);  (b) increasing food supply and reducing hunger with a specia l emphasis on emergencies and disasters 
that require food and agricultural responses or safety nets;  (c) improving rural infrastructure and agricultural market access;  (d) enhancing agricultural research and 
extension.  The CAADP has been formulated  to deliberately focus on investment into 
those four mutually reinforcing "pillars" that can make the earliest difference to 
Africa's dire situation.  We have just concluded recently an implementation roadmap 
for this ambitious strategy, whereby each s ub-region in the continent has identified a 
number of priority regional projects, in line  with the priorities of the CAADP.  These 
detailed and costed regional projects are grouped into categories;  the first are 
quick-win projects to be ready for implemen tation within the next twelve months.  
The second group of projects is of a more medium and long-term nature. 
Another key sector that has a direct bearing on trade is infrastructure.  I am sure that 
all of you know that improvements in this sector would help improve Africa's trading 
capacity, not only with the developed countries but also with itself.  That is why we 
have developed a plan for Infrastruct ure Development called STAP with the 
assistance of the African Development Bank.  It aims at implementing major regional infrastructure projects in the areas of energy , transport and water.  Some of these 
projects have already been underway but are now stalled because of political reasons,  
lack of implementation capacity or lack of finance.  This plan looks at all these 
aspects and tries to resolve them.  So far ten projects in the plan have gone to the 
implementation phase.  To name only a few, the West Africa gas line, the Southern African power pool, the Inga Dam project, the East Africa submarine cable for telecommunications, and the Nile Basin Initiative. 
Other priorities, that are also high on our agenda, include health and education, as 
they are the underlying foundations for poverty reduction and for ensuring that the 
trickle-down effects of growth sink through to the poor. 
This year is a very critical year for Africa due to a large number of events and 
activities that are taking place.  These are: 
1. The G8 Gleneagles Summit which will take place in the UK in early July.  
Two major documents will be discussed at this summit:  the Blair Commission  WT/COMTD/M/53 
 Page 21 
 
 
 Report, which I am sure you are familiar with , and the three-year review of the Africa 
Action Plan, which was endorsed by the G8  Summit in Kanansakis in 2002, in 
support of NEPAD.  I will share with you, br iefly, our thinking on these two reports. 
As far as the Blair Commission is concerned, we have tried, right from the start to 
engage the work of the commission on the levels of the NEPAD Secretariat and the 
NEPAD Steering Committee, conveying a clea r message that the report should be in 
line with the priorities that Africa has iden tified for itself and with the Development 
Framework that Africa has embraced, and reflected in the NEPAD.  In this connection, it is important to note that th e report took into consideration the priorities 
and concerns of NEPAD, but what is mo re important, is that the report does not 
become only a UK report, it should also be a G8 report and its conclusions sponsored 
by other developed countries.  We also need to see the commitments included in the report translated into concrete actions a nd that a follow-up mechanism is established 
to ensure the fulfilment by all parties of their commitments.  This assessment was clearly reflected in the discussion whic h the heads of state and government 
implementation committee had in their meeting last month in Sharm El Shiekh,  
Egypt.  And they have mandated accordi ngly, the NEPAD SC and Secretariat to 
prepare an assessment study of the Report, to be presented to the African leadership 
at their next summit in July. 
Linked to that is the Review for the Africa Action Plan.  Since its adoption in 
June 2002, we have been extensively enga ged with our developm ent partners – the 
G8 Africa personal representative – to ensure the speedy implementation and 
fulfilment of the Plan.  This engagement h as been enlarged in the form of the newly 
established Africa Partnership Forum.  This  is a body that is constituted from the 
NEPAD Steering Committee PRs, and the Africa Personal Representatives from the OECD countries that contribute more than  100 million dollars of Aid annually to 
Africa, as well as the President of the World Bank, the managing director of the IMF, 
and the Director-General of the WTO.  Also in attendance is the UN Secretary 
General's Special Advisor on Africa, and the executive directors of Regional Economic Communities in Africa. 
2. A second important event is the five-year  Review Summit that will be held in 
New York in September this year.  This revi ew is especially important for Africa, as 
evidence clearly shows that Africa is the only continent that is far worse off today 
than it was in 1990, as far as the MDGs are concerned.  Most of the NEPAD 
strategies and programmes were tailored in a fashion to ensure the attainment of the 
MDGs.  In fact, there is a process unfoldi ng on the continent where NEPAD is trying 
to assist the African Union in formulating an African response that will be presented 
to the AU Summit in July this year.  The obj ective of this strategy is to give the 
African leadership a coherent and consiste nt approach to the very imposing question 
of attaining the MDGs. 
3. More important is the Hong Kong Mini sterial that will be held in December 
this year.  We realize that this is a major milestone not only for Africa but for all the participants in the multilateral trading system .  We fully understand the stakes at this 
conference for Africa.  That is why, from our side, we will try to exert every effort 
possible to assist you in realizing Africa's interests in the run-up to that Conference.  We believe strongly that the internationa l community must aim for an ambitious 
outcome at that meeting.  An outcome that fully realizes the Doha Round development promises, including in particul ar a major reform of agricultural trade 
policies in developed countries. WT/COMTD/M/53 
Page 22  
 
 Equally, "aid for trade" should be scaled up substantially to help poor countries 
address behind-the-border constraints to  trade capacity, including through 
investments in critical trade-related infrastructure.  We have to aim at more policy coherence and consistency from our partners in terms of their trade and aid policies.  
Linked to that, more policy space should be  given for African countries, especially 
LDCs, in implementing their commitments in the multilateral trading system so as to 
ensure that we all, rich and poor, gain equal benefits from it. 
NEPAD is not seeking to duplicate the work of the WTO. We are only trying to 
complement it, using whatever means we have, especially in playing an advocacy role in our interactions with the developm ent partners on the level of the heads of 
state within the G8 annual summit mech anism and on the level of the personal 
representatives in the Africa Partnership Forum. 
As I have shared with you some of the progress we have achieved so far, I would like 
also to elicit some of the challenges th at lie ahead in the NEPAD implementation 
process.  Bold actions are, therefore,  required to address these challenges, in 
particular in the following areas: 
1. Strengthening further the sense of 'ownership' of NEPAD, throughout all of 
Africa. 
2. Ensuring the credibility of the NEP AD, through the speedy implementation 
of some specific projects, to show and prove that NEPAD is well functioning. 
3. Integrating the NEPAD's prioriti es and programmes into the national 
development plans of African countries. 
4. Enhancing the role of the pla nners and implemen ters of NEPAD's 
programmes.  In this regard, the weak capacity to plan and implement socio-economic development programmes at regional levels must be strengthened 
measurably through capacity building, including in the field of trade.  We will not be 
able to develop Africa while we are depende nt on others for policymaking, planning 
and implementation.   
5. Increasing the effectiveness of the ro le of UN agencies in Africa, through a 
greater coherence, cooperation and harmoni zation, and wider allocation of funds 
needed for the implementation process. 
6. Accelerating the ongoing dialogue with  Africa's development partners, to 
achieve concrete progress towards honour ing their commitments to reach the 
Overseas Development Assistance target of 0.7 per cent of their Gross Domestic Product (GDP), addressing the problem of foreign indebtness, supporting African efforts to attract additional foreign inv estments, as well as achieving substantial 
market access for African exports. 
In conclusion, let me underline once again that NEPAD is a long-term process.  
Transformation of a continent, as you are certainly aware, is by no means an easy task.  Thus, when assessing what NEPAD has achieved in the very short time of its existence, it should be understood against this backdrop. 
107. The Chairman
 thanked the representative of NEPAD for his statement, and opened the floor 
for questions and comments.  WT/COMTD/M/53 
 Page 23 
 
 
 108. With regard to development in Africa, the representative of Japan  said that in 1993, Japan had 
initiated the Tokyo International Conference for Af rican Development (TICAD).  The philosophy of 
the TICAD process was based on equal partnership with  African countries.  Japan had articulated its 
intention to support NEPAD at the Third TICAD me eting held in Septembe r 2003, and welcomed its 
implementation.  For example, a Japanese expert ha d been dispatched to the NEPAD Secretariat. 
Japan had also signed the TICAD-NEPAD Joint Policy Framework and the common policy guideline 
for promoting trade and investment between Afri ca and Asia.  Japan would deepen its cooperation 
with the NEPAD Secretariat in th e near future. In his speech at the Asia-Africa Summit in April 2005, 
the Prime Minister of Japan announced that in the three years to come, Japan would double its official 
development assistance to Africa, with grant aid continui ng to be its central feature.  As a member of 
the G8 group of countries, Japan was committed and willing to contribute to African development in 
the near future.   
109. The representative of Haiti  said that the representative of NEPAD in his statement had 
mentioned that in order for Africa to reach a growth  rate of 7 per cent, there was a need for $64 billion 
per year.  However, in 2003 the international community had granted $21 billion. He wondered how 
the gap of $43 billion had been filled.  He also  asked what problems NEPAD had encountered in 
terms of implementation. 
110. The representative of the United States  asked whether NEPAD had encountered any 
difficulties or challenges in having trade policy and the benefits of trade integrated into national 
development strategies. 
111. The representative of Egypt  said his delegation believed that it was always useful to have 
dialogue with regional groupings or organizations r esponsible for development.  On the issue of 
coherence, he said that NEPAD did not wish to repl ace other organizations, but to complement them.  
He suggested that for purposes of technical assistan ce, the Secretariat could explore ways to get 
feedback from organizations working on a regional basi s.  He said that interaction on an annual basis 
between NEPAD and the CTD would be a very benefi cial exercise.  He asked what the representative 
of NEPAD thought could be done in the WTO to have more cooperation with NEPAD. 
112. The representative of Kenya  said she was interested to hear  more about the market access 
pillar, and specific elements that could be incorpor ated in the negotiations on the road to the next 
Ministerial Conference.  She also supported the pr oposal of the representative of Egypt for more 
frequent interaction between WTO and NEPAD. 
113. The representative of the European Communities  said he was interested in how the objectives 
and priorities coming out of the NEPAD process were  reflected in national plans, and how this was 
translated into support from the donor community in  terms of development investment for projects 
and other activities.  He said that coherence a nd coordination between donors was important in order 
to avoid duplication. 
114. The representative of FAO  asked about the key elements of interaction between NEPAD and 
the United Nations system. 
115. The representative of NEPAD  thanked all delegations for the interest shown in what NEPAD 
was doing to promote the development process in Africa.   With regard to the intervention made by the 
representative of Japan, he said that NEPAD was working very closely with TICAD, and cooperation 
between the two initiatives was deepening.  He sai d that NEPAD was appreciative that TICAD was 
attempting to align its programmes with the prior ities of NEPAD.  He said that NEPAD welcomed 
Japan's support, not only as co-sponsor of TICAD, but also as a member of the G8. WT/COMTD/M/53 
Page 24  
 
 116. With regard to the question of the representa tive of Haiti, the representative of NEPAD said 
that while there was a need for $64 billion for the financing of projects, official development 
assistance was not the only source of funds.  For exam ple, efforts were being made to make Africa 
more attractive for foreign direct investment.  Increasing African trade through enhanced market 
access was another possible way to gain resources for fi nancing.  With regard to constraints that were 
being faced in implementing NEPAD projects and plans of action, he mentioned the need to 
strengthen the awareness and sense of ownership am ong the African people.  He also mentioned the 
need to build capacity and cap abilities of the regional economic communities, these being the 
implementers and designers of the NEPAD projects. 
117. With regard to the point raised by the repr esentative of the United States about integrating 
NEPAD policies within national strategies, the repr esentative of NEPAD said that one of the main 
characteristics of NEPAD's programmes was that they were regional in nature, with the objective of 
promoting  regional integration.  National-level projects were not directly part of NEPAD's work.  
The need for  NEPAD policies and strategies to reach  the national level was nevertheless recognized.  
Work in this direction was being undertaken at the level of the regional economic communities, as 
well as on a continent-wide basis within the AU sector al meetings.  For example, it had been decided 
that at least 10 per cent of every national budget should  be allocated to the agricultural field.  Within 
the regional economic communities, projects to be implemented on a short, medium and long-term 
basis were identified by the countries themselves th rough the regional communities they were part of. 
118. The representative of NEPAD agreed with the re presentative of Egypt on the need for more 
frequent interaction between WTO and NEPAD.  He said that NE PAD was obtaining tangible support 
from the WTO Secretariat in terms of trade ne gotiations capacity build ing, and he believed 
cooperation would be deepened a nd strengthened in the future. 
119. With regard to the comment made by the re presentative of Kenya, the representative of 
NEPAD said that the market access pillar was high on NEPAD's agenda.  NEPAD was continuing its dialogue in this area with developed country part ners in fora such the Africa Partnership Forum 
(APF). 
120. The representative of NEPAD thanked the Eur opean Communities for its active participation 
in dialogue with NEPAD in a number of fora, incl uding the APF.  He also expressed his appreciation 
for the support given by FAO for the Comprehe nsive Africa Agricultural Development Programme. 
121. The Committee took note
 of the statement of the representative of NEPAD and of all 
interventions.      
L. TECHNICAL COOPERATION AND TRAINING  
(i) Annual Report on Training and Technical Cooperation, 1 January to 31 December 2004 
(WT/COMTD/W/139) 
(ii) Technical Cooperation Audit Annual Report for 2004 (WT/COMTD/W/138)  
122. The Chairman  said the first two sub-items under this agenda item were concerned with the 
annual reports for 2004, namely the Annual Re port on Training and Technical Cooperation – 
document WT/COMTD/W/139 – and the Technical Cooperation Audit Annual Report – document 
WT/COMTD/W/138.  He proposed that the Committ ee consider the two reports together.  The 
Secretariat would, therefore, briefly introduce the reports, after which the floor would be opened for 
questions and discussion.    WT/COMTD/M/53 
 Page 25 
 
 
 123. The Director of the Institute for Training and Technical Co-operation  introduced the Annual 
Report on Training and Technical Cooperation.  He said that the report covered the activities of the 
Institute of Training and Technical Cooperation (ITTC) in 2004.  He recalled that a new approach to 
Trade-Related Technical Assistance (TRTA) had been  approved at the end of 2003 and put in place as 
of 2004.  The approach was articulated around a ser ies of products with objectives attached to them, 
including quality, impact, sustainability, geographi cal balance – but with an emphasis on identified 
DDA target groups (for example, LDCs and small and vulnerable economies) – flexibility, and reliance on partnerships.  Even with all of these objectives the programme remained demand driven in 
its essence.  
124. The Director of the ITTC recalled the process of  informal consultations that was inaugurated 
in 2004 and which had provided a useful framework  for working through issues of concern to 
Members and to the Secretariat.  One outcome of  the consultations was the bi-annual system of 
reporting that was now in place.  In the middle of l ast year, there had been a mid-term review which 
had been an occasion to report on the outcomes of the informal consultation process on a number of policy oriented issues, such as needs assessment, the focus on LDCs, and the partnership programme 
with academic institutions.  This process of inform al consultation was continuing in 2005, and the 
first consultation had been held on 7 April. 
125. The ITTC Director proposed to highlight a number of features of the Annual Report which he 
thought were important. Paragraphs  9 to 13 of the document provided a broad overview.  A total of 
501 activities had been conducted, with over 28,000 pa rticipant days in those activities.  This was 
about 90 per cent of what had been foreseen at the outset of the programme.  Breakdowns by 
geographical region, type of activity and nature of su bstance dealt with were also provided.  A tabular 
summary was to be found in the annex. 
126. The report went on to provide a qualitative summary of the activities for 2004, providing a 
flavour of what was done under the various product categories.  One activity worth mentioning was 
the Regional Trade Policy Courses (RTPCs).  These were having a growing success and impact in the 
programme:  more people were being trained, and ca pacity was being built up in partner institutions 
and in individuals working with the WTO to provide a regional focus.  The Director of the ITTC paid tribute to the academic partners for 2004, namely the University of West Indies, Hong Kong University, University Mohammed V Souissi Campus  in Morocco and the University of Nairobi.  
This section of the report provided descriptions of the thematic activities in some detail.  
127. Paragraphs 83 to 91 dealt with training activiti es with academia – either academic institutions 
or individuals operating in academic institutions.  It  was felt that these activities held great promise in 
terms of their sustainability.  They included the RTPCs already mentioned, as well as other activities 
designed to give beneficiary country academics and their institutions more capacity to train in WTO 
matters.  This led to a higher degree of ownership of these activities in the beneficiary countries.  In 
addition, the e-training programme was re-launched on a new platform and a successful first course 
had been held last year.  The aims of the e-traini ng programme were to act as a springboard for more 
advanced training, as well as to serve as stand-alone  training at a more basic level.  The programme 
offered opportunities to those who could not be physically present at training activities, either in Geneva or in the regions.  
128. Information on Geneva-based support activities w as provided in paragraphs 99 to 100.  Such 
activities included the Geneva weeks and intern ships, including the programme of support for 
missions that acted as coordinators for the various  groups that existed in the WTO.  Resources for 
mission internships had been exhausted at the end of  2004, but had been partly replenished, and the 
programme was continuing in 2005.  The ITTC Di rector confirmed that the Government of the 
Netherlands had undertaken to sponsor a revised  Netherlands trainee programme and that the WT/COMTD/M/53 
Page 26  
 
 programme was now underway.  He offered his thanks  to the Government of the Netherlands for its 
support of internship programmes in the WTO. 
129. Paragraphs 101 to 131 dealt with  partnerships, including sections  on JITAP and the Integrated 
Framework.  Flourishing partnerships with some international agencies were also worth mentioning, 
including with ESCAP, Agence de la Francophoni e (which was particularly active in Africa), 
International Development Law Organization, UNI DO, and the Inter-American Development Bank in 
Latin America (in particular its training arm, the INTAL). 
130. The report contained only a short section on monitoring and evaluation, as there was a 
separate report on that subject.  
131. Information on the funding situation was contained in the last paragraphs of the report.  The  
financial situation in 2004 had b een good, and 82 per cent of the budget for the year had been spent.  
In addition, 82 per cent of the regular budget had been spent.  The latter information had been 
inadvertently left out of the report, and a corri gendum would be issued. There was a comfortable 
cushion to begin 2005, but the situation for the year was still a matter of preoccupation. 
CHF 18.7 million had been received in cash and pledges, while the target was CHF 28 million.  On 
the spend side, CHF 17 million had been spent or co mmitted.  There was hardly any money to carry 
out the balance of the programme. 
132. All in all, 2004 was a source of satisfaction.  Th ere was a feeling that the Secretariat had been  
able to respond to the needs of Memb ers in a timely and flexible way,  that inroads had been made on 
the question of sustainable capac ity building, and that the mone y Members had entrusted to the 
Secretariat had been well used.  
133. The Head of the Technical Cooperation Audit Unit (TCAU)
 made the following statement 
introducing the Technical Cooperation Audit Annual Report: 
Mr. Chairman.  The Committee has before it in document WT/COMTD/W/138 the 
fourth Annual Report of the Technical Cooperation Audit.  In fact, the report covers the period from 1 January to 31 December 2004. 
Judging from the repeated refe rences that have been ma de in the Committee by 
Members to the importance of the tran sparency of and accountability for our 
technical assistance programme, this report, I believe, responds to a priority need that 
has been identified by Members.  I hope th at Members will find the report useful, and 
that it can serve as a basis for discussion and guidance from Members both for our future technical assistance activities and for the evaluation thereof. 
I will confine my introductory remarks to highlighting four main points.   
The first concerns what I would call the c ontext or, if you prefer, the background.  
The report recalls that 2004 was the first year of the implementation of Technical Assistance on the basis of the new planning framework.  The transition from the old planning framework was smooth and we have  found that the Members received even 
more TA than in 2003.  It was characterized by an impressive number of activities 
(501 in 2004), coupled with the continuous ly high number of beneficiaries and the 
short duration (somewhat less than three da ys, on average).  This is not a new 
observation. It would seem that the Secretar iat continued to deliver activities for the 
benefit of as many people as possible and to  satisfy the maximum possible number of 
requests.  This might lead to the conclu sion that, overall, the quantitative approach 
still prevailed over a more qualitative one .  The new planning framework which  WT/COMTD/M/53 
 Page 27 
 
 
 grouped the TA activities and traini ng programmes facilitated Members' 
understanding of what WTO could offer.  The flexibility built into the Plan helped tailor activities to specific Me mber needs.  All this pointed to gradually following a 
more qualitative approach in delivering activities in the future.  
The Audit Unit appreciates that the 2004 TA and Training Plan made specific 
references to the recommendations made in last year's report.  It demonstrates that the 
Secretariat has started considering the recommendations, which were based on evaluation findings and conclusions, for implementation.  
Our second observation on the planning and d esign of TA activities was that further 
efforts to have activities better adapted to  the identified needs of the Members may 
require the development of more specific and in-depth activities that are better 
prepared and that are maybe of longer dur ation.  We have also observed some 
improvement in the preparation and desi gn of the activities and training programmes 
which are now driven by clearer objectives.  However, further efforts are needed in 
this area until all the staff providing TA fully master the basic concepts and tools.  
One of the immediate tasks concerns the formulation of performance indicators and 
targets not only at the level of the individual activities but also for the products that are included in the Plan. 
Our third observation on the results-based implementation and evaluation of the TA 
and training activities point to the continued satisfaction of the participants with the 
quality of TA received.  We introduced last year a kind of a success-rating of the 
activities, which showed that more than 90 per cent of them were considered 
successful or very successful.  In this regard, I would also mention that female participants are still outnumbered by ma le ones, the latter representing some 
two-thirds of the beneficiaries.  We feel  it is important that women should get equal 
opportunities and treatment when it comes to being selected for participation in WTO 
TA activities.  
The Audit Unit believes that a good results-based management should not only 
measure the performance on the basis of monitoring information but manage the 
performance by utilizing evaluative inform ation.  Although the internal evaluation 
system is gradually consolidating, there is still a lot to do in making evaluation 
findings better used and recommendations followed-up.  Reporting about TA and 
training results is an important evaluation ma nagement tool.  In this regard, the Audit 
Unit has observed an improvement, as witnessed by the increasing number of self-evaluation reports (BTORs) received (last year we received 224 BTORs and 
35 Memos).  However, some 36  per cent of the reports did not reach the Audit Unit. 
Fourthly, and in summary, the overall qualit y of the assistance delivered remained 
high in 2004.  The TA providers in genera l demonstrated an impressive command of 
their subjects, and a thorough professionalism in delivery.  It should also be noted that apart from a few occasional complaints  about too much workload, the Audit Unit 
did not identify a teaching/training fatigue.  However, it is not excluded that the consistently high level of success rates might l ead to a kind of complacency.  It is true 
that the WTO Secretariat has a certain comp arative advantage over other agencies in 
delivering TA by being "advocates" of the WTO agreements.  But one should not 
forget that teaching about WTO agreements and building trade-related capacities is a 
free market also open to other agencies.  Hence is the major lesson that one should 
not rest on one's laurels but should make continuous efforts for improvements in the teaching methods, presentations and also in  paying more attention to applying WT/COMTD/M/53 
Page 28  
 
 participative methods and systematic colla boration with fellow-colleagues both in the 
Secretariat and in the regions. 
In closing, I would call your attention to so me typos in the report.  In paragraph 57 
(penultimate line) the cross-reference para graph number is not 116 but 117 and in 
paragraph 123, the referenced  paragraph numbers should read  21 and 39 (in lieu of 22 
and 40). 
Those, Mr. Chairman, are the few remarks by way of introduction to this report on 
the TA activities for 2004.  I am sure Me mbers have comments and observations to 
make about this report, and perhaps about my remarks, and I am ready to answer any questions or comments that Members may wish to make. 
Thank you, Mr. Chairman. 
134. The Chairman
 thanked the Secretariat for the presentations, and opened the floor for 
questions and comments. 
135. The representative of Japan  said his delegation appreciated that recipient countries could 
make their requests when the need arose, as stated in paragraph 5 of the Annual Report.  The number 
of activities was satisfactory, given the scarcity of human resources in the WTO.  It was appreciated 
that some 90 per cent of the participant days had been achieved, as stated in paragraph 9.  His 
delegation was, however, of the view that more de tails on participating rates would be useful, on a 
project by project basis if possible.  Turning to the Audit Report, his delegation welcomed the fact 
that the  recommendations of the Audit Unit had been  duly reflected in the TA Plan, as mentioned in 
paragraph 17.  With regard to the recommendation in paragraph 27 that TA planning be brought in 
line with the biennial planning of the regular budg et-financed activities, he said that his delegation 
was not opposed to discussing this issue, but that the broader picture of TA after the conclusion of the DDA should be kept in mind.  His delegation supporte d the proposal made in paragraph 33 that staff 
Members of ITTC should join Trade Policy Review  (TPR) missions as appropriate.  He also noted 
that a workshop in Geneva could cost between 500,0 00 and 1 million CHF, and suggested that this be 
discussed seriously in the context of the TA Pl an for 2006.  Finally, he announced that the 
Government of Japan had decided to make a fi nancial contribution of CHF 1 million to the DDA 
Global Trust Fund for the present year. 
136. The representative of the European Communities
 noted that the ITTC Director had mentioned 
that the implementation rate in te rms of funding was 82 per cent. He inquired whether the Secretariat 
could shed some light on what had caused the shortf all.  His delegation had al so been expecting that 
additional information would be included on the fina ncial aspects linked to particular activities, and 
wondered whether Members would receive any informati on of that nature in due course.  He inquired 
whether the Secretariat would be able to give some information on the number of activities which 
were pre-programmed in the Plan, and those which we re undertaken on an ad hoc basis.  With regard 
to the Audit Report, his delegation was interested in the recommendations that were made, and was 
willing to discuss them further.  Hi s delegation had noted that the report seemed to suggest that needs 
assessments were not yet being used as actual tools, and sought clarification from the Secretariat on this.  His delegation was also interested in the recommendation of looking closely at the operation of the reference centres; this was part of the process of transferring a function from WTO to nationally or 
regionally based activities, and sustainability was therefore an important consideration.     
137. The representative of Canada
 asked whether the Secretariat might have some ideas on how to 
improve on the implementation rate.  She also asked  for clarification on what the percentages in 
Table 2 on page 26 of the Annual Report referred to, as they did not add up to 100.  With regard to the 
Audit Report, her delegation could support the r ecommendations made.  However, it was felt that a  WT/COMTD/M/53 
 Page 29 
 
 
 little more analysis of the implications of some of the recommendations should be undertaken;  for 
example, what would be the implications of a shift to a two-year TA Plan.  She also noted that the 
Audit Report contained some comments with little or  no recommendations, for example in relation to 
the qualitative elements, with regard to the satura tion with WTO TA, or selection of candidates.  
There was also the issue of communication betw een missions and capitals which needed to be 
discussed.  She appreciated the information given on participation of men and women, and the 
recommendation of equal access for women.  She also suggested that the costs of the consultant who 
was engaged to work on the annual audit be put  on the regular budget, given the importance of 
carrying out the monitoring and auditing function on a regular basis. 
138. The representative of Egypt  said that the establishment of th e RTPCs had been an extremely 
positive step in the provision of TA, and had had a positive impact on the beneficiary countries.  On 
the subject of participation in TA activities, he  said that problems still existed in the area of 
communication and timing.  In particular, after the notice of an activity was issued, there was frequently not enough time for countries to make a ppropriate preparations for a representative to 
attend. With regard to the quality of the courses, he felt that there needed to be an upgrade in the 
content and structure of the material to better cate r to the practical needs of officials working on WTO 
issues.  
139. The representative of Bangladesh
 inquired whether there was a system in place to measure 
and reduce the gap between training received and trai ning not fruitfully utilized.  Alternately, was 
there a system to measure the degree of relevance of  the field of training to the field of subsequent 
placement, and was any feedback on this received from recipient countries. 
140. The representative of the United States  said that her delegation would welcome examples of 
successful TA activities over the year.  On the WTO-UNIDO Memorandum of Understanding, she 
inquired whether there were needs assessments ta king place that replicated what was being done 
under the Integrated Framework (IF).  With regard to the Audit Report, her delegation appreciated the 
recommendations for improvement, and welcomed more discussion on the implications of the 
recommendations.  Her delegation be lieved that the monitoring and evaluation function was critical 
for the success and evolution of TA, and supported Ca nada's proposal that this be handled from the 
regular budget.  Her delegation also supported the go al of being more specific in the indicators.  She 
also recognized the need to address through TA th e practical needs of officials working on WTO 
issues.  
141. The representative of Australia  said that her delegation consid ered the reports, and especially 
the Audit Report, responsive to many of the questions that had been raised in the past.  Her delegation 
looked forward to working with others to refine the indicators and targets.  
142. The representative of Switzerland  suggested that a table of contents at the beginning of each 
report would be helpful.  His delegation, like that  of the European Communities, had been expecting 
an annual financial report to be presented.  The pr ogress made by the Secretariat in enhancing the 
quality of the TA activities was recognized, but his de legation continued to have  some concerns about 
the quantitative approach that still prevailed.  It  was noted that more than 60 per cent of activities 
concerned workshops of three days or less.  His delegation was not opposed to the recommendation in 
the Audit Report to have a two-year planning period, but wanted to highlight the fact that multi-year planning documents had been prepared prior to adop ting the annual approach to planning;  it had been 
decided to set aside the multi-year approach becau se of the ad hoc activities that came up through the 
course of the plan.  In addition, he pointed out th at an independent evaluation was going to be carried 
out soon; before moving to a two-year plan, therefore, it would be useful to have the results of the evaluation.  With regard to the recommendation in the Audit Report concerning the reference centres, 
his delegation suggested that it would be better to wait until the results of the independent evaluation 
were available before establishing such centres w ithin universities.  His delegation supported the WT/COMTD/M/53 
Page 30  
 
 RTPCs, as the quality of the courses was high, and th ey were easy to monitor and evaluate.  What 
was, however, more difficult to evaluate was the im pact at the national level, and his delegation had 
some concerns about the measurement of this.  His delegation had noted th at three-month courses 
would no longer take place in Nairobi, and in that  context inquired about the future of RTPCs in 
English-speaking Africa.  His delegation expressed c oncern that the financial situation of the Audit 
Unit was not assured, and supported the inclusion of that Unit in the regular planning and budget for 
each year. 
143. The representative of Guinea
 said that TA activities were very important for LDCs, as they 
contributed to the strengthening of human resources.  He noted the high cost of organizing an activity 
in Geneva, and suggested that a detailed examina tion be carried out to explore the possibility of 
having more activities outside of Geneva in order to cut costs.  He agreed with the representative of 
Egypt that problems were often faced from an organi zational and administrative point of view if the 
notice of a TA activity was issued too soon before th e actual event.  He also brought to the attention 
of delegations the visa problems faced by official s from his country when coming to Geneva for TA 
activities. 
144. The representative of Morocco  commended the Secretariat for the RTPCs.  He noted that  
RTPCs would no longer be held in Nairobi, and that the Secretariat's partnership with the University 
of Nairobi had entered a new phase.  He inquired  whether this was a strategy adopted by the 
Secretariat that would also apply to other current venues for these courses.  In particular, he inquired 
whether the RTPC currently hosted by his country would also eventually advance to another phase. 
145. The Chairman  noted that paragraph 12 of the Annual Report mentioned that regional seminars 
were the most demanding in many ways, including in terms of cost.  He wonde red if this statement 
also applied to RTPCs, since presumably from a costing point of view organizing activities outside of Geneva would be less expensive. 
146. The Director of the ITTC
, in response to the question from the representative of Japan about 
measuring implementation rates on a pr oject by project basis, said that this was possible for regional 
activities;  such information had been provided in th e previous year.  With regard to the point made 
about ITTC staff joining TPR missions, he said that  this was already happening.  About the relatively 
high cost of organizing events in Geneva, he cautione d against suggestions to move all events to the 
regions;  since the Geneva-based  activities were often subject-specific, organizing several 
subject-specific activities in each of the regions wo uld not necessarily bring down costs.  As there 
were already several activities taking place on a regional basis, what was perhaps of more 
fundamental importance was to examine the value of the Geneva-based symposia.  
147. The ITTC Director said that for activities fina nced from the Global Trust Fund, the reasons 
for the reported implementation rates were the same as they had always been.  After the plan was put 
in place, several factors contributed to a less th an 100 per cent implementation rate.  Some reasons 
might have included the inability of finding an appropriate venue, a shift in emphasis by countries in a 
region, or a lack of demand for national activities.  W ith regard to the regular budget, the reasons were 
clearer.  In 2004, the four trade policy courses organized in Geneva had cost quite a bit less than had been budgeted.  A programme of activities with unive rsities had also been included, and this had not 
been fully utilized.  He said that in 2005 less had been budgeted for the trade policy courses, and in 
addition there would be no surplus for the universit y programme in 2005.  As for what could be done 
to improve the implementation rates, he suggested that this was something that could be discussed 
during the informal consultations. 
148. With regard to the request of some delegations  for a financial report, the ITTC Director said 
that this request would be transmitted to the Admi nistration and General Services Division (AGSD).  
He said that the AGSD was undergoing some changes in  relation to management  of funds for TA, and  WT/COMTD/M/53 
 Page 31 
 
 
 that could explain to some extent why there was less financial information in the report than some 
delegations might have expected. 
149. The ITTC Director said that the tables in the annex of the Annual Repor t gave a general idea 
of the split between what had been programmed a nd what had not.  Regional and global activities had 
been programmed. National activities were not progr ammed by definition.  W ith regard to other 
activities (conferences, etc.), he said that some ha d been known about in advance, and some had not.  
150. In addressing the point made about the need for Members to be given sufficient advance 
notice of TA activities, the ITTC Director said that there was usually a nine to ten week lead time in the preparation of a regional activity.  He said  that  letters were sent out about one month to one and a 
half months in advance of an activity, which seeme d to allow sufficient preparation time.  He urged 
beneficiary countries to improve and speed up their internal processes.  
151. With regard to the point raised by the repr esentative of Egypt on the need for improved 
quality of the TA activities, the ITTC Director said that this was related to the issue of basic training versus more advanced training.  He said that the current objective was to look for more advanced and 
sustainable types of training.  Among the Geneva-based programmes, a number of activities were 
moving to an advanced level.  He also pointed out th at  participants in a TA activity typically had very 
diverse backgrounds, and it was, therefore, not always possible to focus only on advanced training.  He was, however, willing to work with Members to improve the process of selecting participants. 
152. The ITTC Director said it would certainly be po ssible to include some examples of successes 
in the Annual Report, as had been suggested by the representative of the United States.  Some 
examples of when things had not gone so well might al so be useful.  He also said that it would not be 
a problem to include a table of contents in the report.  
153. On the question of the future of RTPCs for English-speaking Africa, the ITTC Director said 
that RTPCs for this group of countries would still be held, and only the ve nue would change.  The 
next course would be held in Namibia, beginning in June 2005.  He also said that from the start the 
idea behind regional courses had been for the courses to be held in a venue only long enough for the 
academic partner to take on board in a sustainable manner what was being offered by the WTO.  The 
WTO would then move on to hold courses in other venues. 
154. In response to the question by the Chairman, the ITTC Director clarified that a regional 
seminar or RTPC was heavier in terms of logisti cs, and a longer lead time was required.  A national 
activity, on the other hand, could be or ganized in a very short time frame. 
155. The representative of Kenya
 said she wished to comment on the relocation of RTPCs to new 
venues.  She said that before moving to the ne xt phase of collaboration between WTO and a local 
partner, it was important that the capacity be appropriately built in each hosting country.  Her 
delegation suggested that a tool was required to me asure whether the appropriate capacity had been 
attained in each venue before moving the RTPCs to other countries.  
156. It was confirmed by a representative of ITTC  that the percentages in the Annex table did not 
add up to 100, which was an error.  This woul d be corrected. The absolute numbers on the activities 
were, however, correct.  
157. With regard to the question by the representa tive of the United States on the scope of the  
WTO-UNIDO Memorandum of Understanding, the re presentative of ITTC said there were some 
similarities between the WTO- UNIDO collaboration and the IF, and UNIDO was involved in a 
number of IF-related programmes.  However, th e WTO-UNIDO collaboration was much narrower in 
its focus than the IF, and was mo re targeted on specific issues. WT/COMTD/M/53 
Page 32  
 
 158. The Head of the Technical Cooperation Audit Unit
 said that the issue of quality versus 
quantity was a key consideration.  The issue touched upon questions relating to the number of 
activities per year, the process of selecting participan ts, the agenda and scope of activities, and the 
duration of activities.  If efforts were made to improve on some of these elements, the balance between quality and quantity would necessarily be affected.  
159. With regard to indicators and targets, the H ead of the TCAU said that these needed to be 
improved further.  He belie ved that this could be done not only at the level of individual TA activities, 
but also at the product level.  
160. The Head of the TCAU, in relation to the recommendation of putting in place a planning 
schedule of more than one year, said that this would allow a little more planning to take place in 
advance, and may also make it easier to get resources.  
161. With regard to the recommendation for an evalua tion of the reference centres, the Head of the 
TCAU said that what had been thought of was an internal thematic evaluation.  On the idea of 
extending the reference centres to universities, he said that TCAU was only thinking about the 
universities that had been partners in the preparation of the RTPCs. 
162. The Head of the TCAU said there were curren tly sufficient funds allocated to TCAU to 
finance a consultant until June 2005.  If monitoring and evaluation were to be considered as a separate 
budget line in the next TA Plan, this would only be effective from January 2006.  An immediate need 
was for more funds to cover the peri od from September to December 2005.  
163. The Committee took note
 of the reports and the interventions made.  
(iii) Terms-of-Reference for the Strategic Review of WTO-Provided Trade-Related Technical 
Assistance Activities (WT/COMTD/W/140) 
164. The Chairman  recalled that the subject of a review of WTO-provided trad e-related technical 
assistance was briefly discussed in the CTD in 2004.  Some donor countries, in light of the increasing 
WTO technical assistance activities, had suggested the possibility of proceeding with an external 
evaluation.  The Secretariat had subsequently b een requested to prepare a first draft of the 
Terms-of-Reference for interested delegati ons.  The document WT/COMTD/W/140 served as a 
compilation of different contributi ons and suggestions made by dele gations in meetings held on 12 
April and 2 May 2005. He said that the exercise woul d be fully financed by separate contributions by 
donor countries, and that the Secretariat had already received a contribution from one Member.  He called Members' attention to paragraph 12 of the document that referred to the composition of the 
Steering Committee which would be monitoring the ex ercise, and also to the overall request before 
the CTD to adopt the Terms-of-Ref erence for the Strategic Review (TOR).  He said that one of the 
main issues to be addressed by the CTD after adopting the TOR was the appointment of the Steering Committee;  in that regard, he proposed to follo w the normal practice in WTO bodies, which was for 
the Chairman to select the Steering Committee.   
165. The representative of Egypt
 agreed that the Chairman could conduct information 
consultations and select the Steering Committee, which would then be approved by the CTD.  He 
asked when the CTD would meet for this purpose.   
166. The Chairman  said that there were two ways of approving the Steering Committee.  One way 
was for him to send out a fax once the names of the participating Members were available.  An alternate way was to briefly convert the CTD in Dedicated Session into a meeting of the Regular Session.    WT/COMTD/M/53 
 Page 33 
 
 
 167. The representative of Canada  said that her delegation was comfortable with the TOR.  She 
also said that her delegation was agreeable to the Chairman sending out a fax to inform of the names of the participants in the Steering Committee. 
168. The representative of Norway
 said that his delegation was comfortable with the TOR.  His 
delegation was looking forward to the outcome of the Review.  He said that his delegation would use 
the Review, in parallel with the Annual Report a nd the Annual Audit, as a tool when discussing work 
in progress over the coming years  
169. The representative of the United States  said that her delegation was comfortable with the 
TOR.  With regard to the appointment of the St eering Committee, she said that her delegation would 
accept any logical procedure s uggested by the Chairman.  
170. The representative of China  said that his delegation welcomed the Chairman's proposal on the 
selection of the Steering Committee.  He wondere d whether the TOR could be adopted with the 
understanding that the composition of the Steering Committee would be decided after consultation. 
171. The Chairman  said that further consultations would ce rtainly be held on the selection of the 
Steering Committee.  
172. The Committee adopted  the TOR, and agreed  that the Chairman could, after further 
consultations, appoint the Steering Committee through a fax.  
M. OTHER BUSINESS  
173. The Chairman  reminded Members that the next meeti ng of the CTD was scheduled for 5 and 
6 October 2005. 
174. The meeting was adjourned . 
 
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